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Capitaland Investment commits over US$700 million to build its first data centre in Japan

Feb 07, 2025 - eliteagent.com
Land for data centres in Osaka, Japan, has become highly valuable, with a Temasek-backed real estate asset manager securing a land parcel and 50 megawatts of power capacity. This acquisition marks a significant entry into one of Asia's fastest-growing data centre markets, aligning with CLI’s strategy to leverage the increasing demand for high-performance computing facilities driven by digital transformation. Michelle Lee, CLI’s managing director of private funds, highlights the expected double-digit growth in data centre demand, which is outpacing new supply due to global digitalisation and AI adoption.

Osaka is emerging as a key hub for data centre investment due to its strong connectivity, reliable power infrastructure, and proximity to major tech and financial industries. As Japan's digital economy accelerates, major cloud providers and tech firms are expanding their presence, making it an attractive market for real estate and infrastructure firms like CLI. Since 2021, CLI has added 23 data centres to its portfolio, strategically expanding into key markets to support the growing needs of cloud computing, AI applications, and enterprise digital infrastructure.

Key takeaways:

  • Land for data centres in Osaka, Japan is highly valuable, with a Temasek-backed real estate asset manager securing a land parcel and 50 MW of power capacity.
  • CLI is expanding its data centre portfolio in response to the growing demand for high-performance computing facilities driven by digitalisation and AI.
  • Osaka is becoming a key hub for data centre investment due to its connectivity, power infrastructure, and proximity to tech and financial industries.
  • Japan's accelerating digital economy is attracting major cloud providers and tech firms, making it an attractive market for real estate and infrastructure investments.
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